Abbas accused President Trump of “giving away” Jerusalem to the “Zionist movement," and said that “it will be unacceptable for it (the US) to have a role in the political process any longer since it is biased in favor of Israel.”

Prime Minister Netanyahu slammed Abbas' rejection of US mediation in an event honoring the Mossad at the President's Residence in Jerusalem Wednesday evening.

"It is better for the Palestinians to recognize reality and work for peace, not for radicalization, and to recognize another fact about Jerusalem: not only is it the capital of Israel, but we also maintain freedom of worship in Jerusalem for all religions and we are the only ones who keep this promise in the Middle East," Netanyahu said.

He said that Israel was not impressed by the threats of Abbas or his aides.

"In the end, the truth will win and they will recognize that many countries will also recognize Jerusalem as Israel's capital and will also move their embassies there," Netanyahu declared.